A company's net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals:

Question

Quizplus · Accepted Answer

Gross Margin = Net Sales - Cost of Goods Sold
Gross Margin = $775,420 - $413,890
Gross Margin = 361,530

Gross Margin Ratio = (Gross Margin / Net Sales) x 100%
Gross Margin Ratio = (361,530 / 775,420) x 100%
Gross Margin Ratio = 46.6%

Therefore, the correct answer is B) 46.6%.

A Company's Net Sales Are $775,420, Its Costs of Goods